Practical Uses of ChatGPT for Finance Professionals

In a previous article, we learned about how ChatGPT can be used in different areas of finance. There are many applications such as investment analysis, risk management, fraud detection, and so on. In this article, we will look at how ChatGPT can help finance professionals in everyday operations and make them more productive. They can help you save time, improve your workflow, and act as an efficient assistant.

ChatGPT is trained on a large amount of data and can help you answer many questions. But that’s not it. You can even provide your own data, whether structured or unstructured and ask ChatGPT to answer questions and perform tasks on that data. In AI terminology, the art of framing questions to get the best results is called prompt engineering. Let’s look at some of the things you can do.

Summarize Financial Information

As a Large Learning Model, ChatGPT can be very good at summarizing any financial information you provide. For example, if you have a news article or a financial report, you can paste that information into the ChatGPT interface, and then ask ChatGPT to summarize it or answer some questions you may have.

Example prompt: Below I have provided an article. Please summarize it for me. After that, I will ask you a few questions about that article. {Articles content}

Based on this prompt, ChatGPT will summarize the article for you and after that, it will be ready to answer more questions from the article. You can tweak the prompt as per your liking. For example, you can specify that you need the summary in 200 words.

Extract Financial Information

Based on the provided content, you can ask ChatGPT to extract the important numeric data from the content and present it as a table.

Example prompt: From the below content, can you extract the important financial info and present it as a table? {Article content}

For the purpose of this article, I provided the content of this article. Based on that, it provided me with this tabular data.

If you have a lot of data, this could save you a lot of time.

Data Analysis

ChatGPT is not just good at answering questions, but it’s also good at analyzing data. For example, you can provide some structured financial data in table format and then ask it to analyze the data. It could be financial reports such as balance sheets, stock market data, investment portfolios, etc.

As an example, I have taken the past 60 days' daily stock data for Apple stock. The data contains, date, open, high, low, close and volume.

Example prompt: Here is some stock data for AAPL stock. Based on the below data, can you summarize the price trend? { add data table }

Get Help with Coding

ChatGPT is trained in Python, R and many other programming languages. So, you can ask it to provide you code in either language based on your requirement.

Example prompt: I have stock data for Apple stock for the past 90 days. My data contains dates and closing prices. Can you provide me with the R code to calculate the daily stock returns?

Based on this prompt, ChatGPT will provide you with the code that you can run in RStudio.

Understand Financial Concepts

ChatGPT is trained in a large amount of text. If you’re finding it difficult to understand a financial concept, you can ask it to explain it to you in simple terms.

Example prompt: Please explain the concept of The Basel II capital ratio as you would explain layman. Please also provide an example.

These were just some examples of you can use ChatGPT in your day-to-day work. Once you start using it, you will see how you can use it in many different ways. Also note that ChatGPT is interactive. So, if you don't get the correct response the first time, tweak your prompt and try again. Prompt engineering itself has become a big field now. Do note that this is an AI model, and at times, it can give you wrong answers. So, it’s important to review the results before you apply them or share them with someone.